wireco worldgroup lender … excellence – data-driven decisions and rigorous continuous...

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Public Version

July 2016

WIRECO WORLDGROUP

LENDER

PRESENTATION

1

IBDROOT\PROJECTS\IBD-NY\WEARS2016\590772_1\08. Lender Presentation\Public Lender Presentation\WireCo Lenders Presentation (Jul.16)_vFF.pptx

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Disclaimer

1

This presentation and information contained herein constitutes confidential information and is provided to you on the condition that you will hold it in strict

confidence and not reproduce, disclose, forward or distribute it in whole or in part without the prior written consent of the WireCo WorldGroup Inc. (“WireCo”).

Certain information in this presentation is based upon management forecasts and reflects prevailing conditions and management’s views as of this date, all of

which are subject to change. In preparing this presentation, we have relied upon and assumed, without independent verification, the accuracy and completeness of

all information available from public sources or which was provided to us by third parties. The information contained herein is as of this date and is subject to

change, completion or amendment and we are not under any obligation to keep you advised of such changes.

This presentation and the information contained herein have been prepared to assist interested parties in making their own evaluation of WireCo and the facilities

and does not purport to be all-inclusive or to contain all of the information that a prospective participant may consider material or desirable in making its decision to

become a lender. Each recipient of the information and data contained herein should take such steps as it deems necessary to assure that it has the information it

considers material or desirable in making its decision to become a lender and should perform its own independent investigation and analysis of the facilities or the

transactions contemplated thereby and the creditworthiness of WireCo. The recipient represents that it is sophisticated and experienced in extending credit to

entities similar to WireCo. The information and data contained herein are not a substitute for the recipient's independent evaluation and analysis and should not be

considered as a recommendation that any recipient enter into the facilities.

Forward-Looking Statements

All statements, other than statements of historical facts, included in this presentation that address activities, events or developments which are expected or

anticipated to occur or which may occur in the future are forward-looking statements. Forward-looking statements convey the current expectations relating to the

anticipated financial condition, results of operations, plans, objectives, future performance and businesses of WireCo. These statements can be identified by the

fact that they do not relate strictly to historical or current facts. They are subject to uncertainties and factors relating to the operations and business environment of

the businesses that will together comprise WireCo, all of which are difficult to predict and many of which are beyond the control of these businesses. Factors that

might cause such a difference include those discussed in WireCo’s filings with the Securities and Exchange Commission, which include its Annual Report on Form

10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. For more information, see the sections entitled “Cautionary Information Regarding

Forward-Looking Statements” and “Risk Factors” contained WireCo’s Annual Report on Form 10-K and in other filings. Such uncertainties and factors could cause

WireCo’s actual results to differ materially from those stated in the forward-looking statements. Further, any forward-looking statement speaks only as of the date

on which it is made, and no obligation is assumed to update any forward-looking statement to reflect events or circumstances after the date on which it is made or

to reflect the occurrence of anticipated or unanticipated events or circumstances.

Market Data Information

Certain market data information in this presentation is based on estimates. The industry, market and competitive position data used throughout this presentation

were obtained from internal estimates and research as well as from industry publications and research, surveys and studies conducted by third parties. The

estimates are believed to be accurate as of the date of this presentation. However, this information may prove to be inaccurate because of the method by which it

was obtained or because this information cannot always be verified due to the limits on the availability and reliability of raw data, the voluntary nature of the data

gathering process and other limitations and uncertainties. No representation, warranty or undertaking whatsoever is given or made regarding such information and

the recipient should inform itself as to the accuracy of such data and the reasonableness of such forecasts and their appropriateness for WireCo.

2


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2

Today’s Presenters

Chris Ayers, WireCo, President and CEO

Joined WireCo in July 2013

Previously Executive Vice President and President of Global Primary Products at Alcoa

Formerly Executive Vice President at Alcoa Inc., President of the PCC Forgings Division of Precision Castparts Corporation, and President of

Wyman Gordon Forgings

Bachelor's and Master’s degrees in Aerospace Engineering from the Georgia Institute of Technology and an MBA from the University of

Connecticut

Brian Block, WireCo, Senior Vice President and CFO

Joined WireCo in July 2010, served as VP of Business Development and then SVP of Finance, became CFO in May 2013

As CFO responsible for financial management and executing M&A

Previously Director at Paine & Partners for 8 years during which was a member of numerous Board of Directors, including of WireCo’s board

Formerly Associate at CIBC World Markets in the leveraged finance group

Bachelor of Science degree in Management from Tulane University’s A.B. School of Business

Gary Gluzberg, WireCo, Vice President of Finance

Joined WireCo in December 2014 as Vice President of Finance, previously member of WireCo’s Strategic Operations group from 2 010-2011

Associate at Paine & Partners from 2008-2010 prior to joining WireCo’s Strategic Operations group

Began career at William Blair & Company as an investment banking analyst in the consumer retail group

Bachelor’s from Michigan State University and an MBA from Harvard Business School

Kosty Gilis, Onex Partners, Managing Director

Joined Onex in 2004 and has 16 years of private equity experience

Onex transactions include the acquisitions of Emerald Expositions, Tomkins plc and Allison Transmission

Currently serves on the board of Emerald Expositions

Previously worked at Willis Stein & Partners and formerly was a management consultant at Bain & Company

B.S., Economics from The Wharton School of the University of Pennsylvania and an MBA from Harvard Business School

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Section I | Company Overview

4


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WireCo’s Corporate Strategy

Mission Statement

4

Corporate Vision

Supported by Strategic

Action Points

Team Approach – Passionate team-oriented workforce collaborating to develop the organization and people every day 1

Innovation at Every Level – Innovate at all levels of our organization: products, solutions, services, internal processes,

environment 2

Customer Focused Growth – Gain market share by putting customers as the main driver for decisions and developments 3

Operational Excellence – Data-driven decisions and rigorous continuous improvement create safe, reliable and cost

effective operations 4

Generation of Earnings and Cash – Strong financial performance attracts and rewards the best employees, customers,

shareholders and suppliers 5

WireCo WorldGroup strives to build strong relationships with its customers by delivering high quality, value added

products and services on a timely basis to meet the needs of end users in the industries it serves. As a technical and

market leader, WireCo innovates in all areas of the Company for the benefit of its customers, to offer its owners a return on

their investment and to provide its employees a safe, challenging and rewarding work environment.

5


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Introduction to WireCo

Source: WireCo management 1 Based on midpoint of publicly disclosed ranges of $155.5 – 157.5 million for Q2

Revenue and $26.0 – 27.0 million for Q2 Adj. EBITDA. See Appendix for EBITDA

reconciliation. 2 Based on LTM Q1 2016 Revenue.

5

Overview

The leading global manufacturer of steel and synthetic rope, specialty wire and engineered products

— Top market shares in all products and end markets

— LTM Q2 2016 Revenues of $635 million and Adjusted EBITDA of $108 million (17.0% margin)1

“Mission-critical" products used in heavy lifting, pulling, mooring, supporting and suspension

Comprehensive portfolio of highly engineered products

Diverse range of end markets, geographies and customers

— Industrial / infrastructure, fishing, mining, maritime, structures, and oil and gas (offshore and onshore)

— ~6,000 customers; products sold into 119 countries

— 11 go-to-market brands with reputation for premium quality and performance in their respective niche markets

— ~6,000 individual SKUs

Product performance, quality and safety are of utmost importance to customers

Consumable products and rigid replacement cycles; significant recurring revenue base

Global footprint

— 24 manufacturing facilities in eight countries

— 39 distribution centers and sales offices globally

— ~3,900 employees and 80 engineers

Product Mix2 Geographic Mix2

Steel Rope46%

Synthetic Rope24%Specialty

Wire / Yarns20%

Engineered Products10%

Europe48%North

America35%

South America

8%

Asia / Middle East7%

Africa2%

6


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Source: WireCo management

Note: Product and end market mixes based on LTM Q1 2016 sales; Steel Rope includes EMC. Other includes Wire and Yarn sales; Engineered Products included within end markets.

6

Rope (70% of Sales)

Broad Portfolio of Products and Diverse End

Markets

Engineered Products

10% of Sales

Engineered plastic moldings and

sheets made from a mix of

recycled and new materials;

products replace steel and wood

with a more durable material

Applications include infrastructure,

offshore platforms, conveyor belts,

pipe systems, railroad ties,

offshore buoys, etc.

Specialty Wire/Yarns

20% of Sales

Products include specialty wire

with high strength characteristics,

and yarns used in various

industrial applications

Wire and yarn are the key inputs

used in the manufacturing process

for steel and synthetic rope,

respectively (satisfies ~85% of the

Company’s internal wire needs,

providing control over quality,

supply, and cost of inputs)

Steel Rope

46% of Sales

Highly engineered specialty

products, general purpose steel

wire ropes, and electrical signal

transmission cable (EMC)

Applications include mission-

critical lifting solutions

Synthetic Rope

24% of Sales

Highly engineered synthetic ropes

and technical products that have

the strength characteristics of

steel but are lighter, more

compact, and corrosion resistant

Applications include ship assist

and towing and commercial

fishing

Industrial

40%

Maritime

7%

Fishing

13% O&G - Onshore

9%

O&G - Offshore

13%

Mining

6%

Other

11%

Highly Diversified End Markets

7


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History of WireCo


End Market Mix Evolution

2006A

LTM Q1 2016

Story of Market Leadership, Diversification and Growth

Industrial60%

O&G Onshore

30%

Mining10%

Brazil

expansion

Expanded

Brazil and

Poland

operations

1931 2005

2015 2013 2014

2009 2011 2010 2012

2007

Acquired Endenburg

B.V. and opened WireCo

Crane Center in the

Netherlands

Establishment of

Operational

Excellence program

Appointed new CEO

with new team of

CFO, CCO, CTO, CIO

and CAO

Acquired

Acquired

Acquired

Acquired

Growth, Integration and Operational Excellence

Wire Rope

Corporation of

America, Inc.

("WRCA") founded

as a spin-off from

Wire Machinery

Corporation of

America

Acquired

Portfolio Buildup

$371-743mm Revenue

Acquired

Wireline

Works

Acquired

WRCA acquired

by Paine and

Partners

Purchased

U.S.

Reel

Formation

Up to $60mm Revenue

7

Industrial40%

Fishing13%

O&G Offshore13%

O&G Onshore9%

Maritime7%

Mining6%

Other11%

2016

Onex agreed

to investment

in WireCo to

drive growth

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Section II | Key Investment Highlights

9


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Key Credit Highlights

9

“Mission-Critical” Consumable Products with

Premium Brand Recognition 2

Long Standing, Diversified Customer Base 5

Flexible Operating Model Affords Ability to Generate Free Cash Flow in

All Market Conditions 6

Highly Diversified Business Mix 4

Leading Global Player with Extensive Market Reach 1

Experienced Management Team with Proven

Ability to Deliver Results 7

Engineering Leader Driving Differentiated, Value-Added

Customer Proposition 3

10


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Leading Global Player with Extensive Market Reach


10

Sales and Distribution

Wire Manufacturing Facilities

Engineered Products Manufacturing Facilities

Steel and Synthetic Rope Manufacturing Facilities

With 24 manufacturing facilities, 39 distribution centers / sales offices and a 129 person technical sales force, WireCo’s

global manufacturing and distribution network is a key competitive advantage

1

Global Manufacturing and Sales Footprint with Ability to Provide Local Customer Service

11


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“Mission-Critical” Consumable Products with

Premium Brand Recognition

11

WireCo’s products are mission critical across a variety of industries serving applications with high cost of failure

Key

Brands

2

Arrestor Cable

Industrial

Fishing

Fishing Net

Rig Drill Line

Onshore Oil and Gas

NASA Parachute

Cables

Other

Surface Mining Drag Line

Mining

Barge Crane

Maritime

George Washington

Bridge

Industrial

Drill Line

Riser Tensioner (MRT)

and Pull In Lines

Crane Ropes

Mooring Lines

(Underwater)

Offshore Oil and Gas

12


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“Mission-Critical” Consumable Products

with Premium Brand Recognition

1. Product longevity

2. Overall quality of product

3. Timely technical service

4. Honesty and trustworthiness

5. Overall perceived product value

6. Expertise of technical representatives

7. Supplier accessibility and response time

8. Technical representatives product

knowledge

9. Partnership and commitment from supplier

10. Proactive communication

11. Competitive pricing

Source: WireCo management 1 Represents percentage of sales that constitute replacement business. 2 Based on a WireCo Customer Survey.

Buyer Purchasing Decisions2

2

End Market

Example

Product

Primary

Application

Purchase

Price Range

Cost of

Failure

(per day)

Estimated

Replacement

Cycle

Estimated

Avg. %

Replacement

Industrial &

Infrastructure Hoist Lines Cranes

~$1k -

$250k

$20k -

$2mm

1-4

years ~70%-80%

Fishing Tuna Nets Commercial

Fishing ~$5k - $1mm

$10k -

$1.5mm 2-4 years ~90%

Oil & Gas

(Offshore)

Synthetic

Mooring Line Production

$50k -

$15mm $75k - $650k

1-25

years ~95%

Oil & Gas

(Onshore) Drill Lines Exploration

~$25k -

$150k $12k - $15k

6-18

months ~95%

Maritime Tug Lines Ship assist

and Towing

$5k -

$150k $10k - $15k

12-18

months ~90%

Mining Shovel Hoists Coal and

Copper ~$20k - $250k

$350k-

$5mm

2 months -

2 year ~95%

Serving price-inelastic buyers focused on quality and avoidance of cost of downtime / failure

Leading brand recognition

Reputation for superior quality

Unique technical support drives

customer loyalty and market share

opportunities

12

1

13


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Engineering Leader Driving Differentiated, Value-

Added Customer Proposition

13

Consistently designs products to meet

the most stringent requirements in the

industry

More global quality certifications than any

supplier in the industry

Continued focus on quality testing throughout

the manufacturing process

First-time yield of 98%

Ability to clearly demonstrate superior product

performance

Partnership with customers in

development of next generation

products

Ability to customize products for

customer-specific needs

R&D team continually focused on delivering

“longer, lighter, stronger” product

enhancements

75 actionable pipeline projects

Dedicated engineering and R&D organization with 80

product engineers on staff (over 1/3 have

advanced degrees)

Industry leading materials science experts

Breadth of manufacturing experience and

know-how across the product spectrum

and enhancements

Leading field response team in each product category /

end market

Market leading operational support software

and customer training capabilities

On-site service driving customer

solution focused product development

Involvement of engineering personnel across development, sales, and technical service organizations defines customer

experience, enhancing WireCo’s value proposition

World Class

Engineering Capabilities

with Field Engineering Teams

Offering Ongoing Technical Support

3

14


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129 Customer Mix

Highly Diversified Business Mix


Note: Product, end market and geographical pies based on LTM Q1 2016 sales. Steel Rope includes EMC.

14

4

Product Mix Geographic Mix

Diversity across products, end markets, geographies, and customers provides ability to capitalize on positive

secular trends and mitigates against volatility in any particular end market

End Markets

All Others

80%

Steel Rope46%

Synthetic Rope24%

Specialty Wire/Yarns

20%

Engineered Products

10%

Europe48%North

America35%

South America8%

Asia / Middle East7%

Africa2%

Industrial40%

Fishing13%

Other11%Maritime

7%

O&G Offshore

13%

O&G Onshore

9%

Mining6%

Stable EndMarkets(71% of

Revenue)

15


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Longstanding, Diversified Customer Base


15

Customer Highlights

~6,000 customers globally

— 20+ years working with key

customers

Highly fragmented customer base

— No single customer represents more

than 3% of sales

Customers are “sticky,” ranking quality,

performance and service as their highest

priorities as opposed to price

Customers rely on product quality and

customer service to avoid the significant

costs from downtime or failure of

products

WireCo’s strong customer relationships

are driven by:

— Exceptional product quality and

safety

— Value-added customer service

provided through its extensive field

engineering and R&D organization

Deep, longstanding, “sticky” relationships with premier customers with runway for further growth

Selected Customers

WireCo’s Top 20 Customers Represent Only ~20% of Sales

Average tenure of top 20 customers:

20 years

Largest customer represents only

3% of sales All Others

80%

5

North

America Europe Other

Ind

ustr

ial

(Distributor)

(Distributor / OEM)

(Distributor, Mexico)

(OEM)

(OEM, NA & EU)

(OEM, China)

Fis

hin

g

(Distributor)

(Distributor, Global)

(End User)

Oil &

Gas

/

(Distributor)

(Distributor, NA & EU)

(Distributor, Global)

(OEM)

(OEM / Distributor, Global)

Mari

tim

e

(Distributor)

(End User)

(End User)

(OEM, Global)

Min

ing

(Distributor)

(Distributor, South America)

(End User)

(End User, Global)

Oth

er

(Wir

e)

(OEM)

(OEM)

(OEM, Mexico)

16


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Flexible Operating Model to Manage Costs

for Market Conditions

16

Strong Financial Fundamentals Summary Financial Performance

Source: WireCo management; $ in millions

Note: Constant currency figures reflect EUR FX rate of 1.138 1 Unlevered Free Cash Flow calculated using EBITDA less capital expenditures less change in NWC.

Re

cu

rrin

g R

eve

nu

es

H

igh

Co

ns

iste

nt

Ma

rgin

s

Mission critical components in customers’ operations

Global manufacturing base provides proximity to customers,

which is a competitive advantage as it reduces cost of freight

Non-discretionary spending and rigid replacement cycles

Product and end market diversity insulates WireCo from

volatility in any particular market

Proactive management of operational cost base, supported by

small underlying percentage of total costs being fixed: ~13%

Commodity price pass through mechanisms and

steel surcharges fixed at the time of shipment

Premium pricing with historical proven stability due to customer

focus on product quality, service quality, reputation and safety

Str

on

g F

ree

Ca

sh

Flo

w

Expansive global manufacturing base with proximity to

customers provides flexible cost structure

Low maintenance capex requirements

(~$10-$15mm annually)

Focused strategy on working capital management to obtain best

in class metrics in all categories

Fundamental characteristics of WireCo’s business model support consistent margins

Adj. EBITDA Margin (Constant Currency)

Unlevered Free Cash Flow1

% Margin

6

Mission critical nature supports price inelastic customer, with

demonstrated stability in 2015, despite energy markets decline

Consumable products (6-24 month useful life) operating

in rigorous conditions need frequent replacement

16.5 %

17.6 %

17.0 % 17.0 %

2013A 2014A 2015A LTM Q1 2016

$ 130 $ 125

$ 100

$ 112

15.8 %

14.6 % 14.7 %

17.1 %

2013A 2014A 2015A LTM Q1 2016

17


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$ 369

$ 299

$ 150

$ 120

$ 68

$ 52

$ 34

$ 26

$ 39

$ 34

$ 29

$ 22

$ 17

$ 18

$ 706

$ 570

2014 2015

12%

88%

Fixed Costs(% of Total Costs)

Variable Costs(% of Total Costs)

13%

87%

Flexible Cost Structure

17

6

Management successfully maintained EBITDA margin at 2014 levels as a result of highly variable cost structure and

management of expenses

Fixed v. Variable Cost Summary1 Cost Structure Highlights

Approximately 87% of total costs are

variable, with raw materials and freight

accounting for nearly 50% of total cost

structure

Management proactively manages fixed

cost base by implementing ongoing

productivity and SG&A initiatives to right

size operations for changing market

conditions

— Successfully eliminated $11 million of

fixed costs in 2015

— Monthly rolling forecast process

allows for quick response to market

conditions

$ in millions

Source: WireCo management 1 EBITDA adjustments allocated to respective line items, as appropriate.

$85mm Fixed

Costs

(10% of sales)

$620mm

Variable

Costs

(72% of sales)

$74mm

Fixed

Costs

(11% of

sales)

$496mm

Fixed

Costs

(72% of

sales)

Freight - Variable

SG&A - Variable

Plant Costs - Variable

Raw Material Costs - Variable

Distribution Center Expenses - Fixed

SG&A - Fixed

Plant Costs - Fixed

18


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Experienced Management Team with

Proven Ability to Deliver Results


18

Key Management Initiatives

Name Title

Total Years of

Experience Former Roles

Chris Ayers President - Chief Executive Officer 27

Joined WireCo in July, 2013

Formerly an Executive Vice President at Alcoa Inc, President of the Forgings Division

of Precision Castparts Corporation, and President of Wyman Gordon Forgings

Holds Bachelor's and Master’s degrees in Aerospace Engineering from the Georgia

Institute of Technology and an MBA from the University of Connecticut

Jose Gramaxo SVP - Chief Commercial Officer 35

Joined WireCo in July 2012 as Senior Vice President of Global Synthetics, following

the acquisition of Lankhorst; leads WireCo’s sales and marketing efforts

Previously President and CEO, as well as Vice President and Chief Operations

Officer, of Lankhorst

Brian Block SVP - Chief Financial Officer 17

Joined WireCo in July 2010; served previously as VP of Strategy and SVP of Finance

Previously, he was a Director at Paine and Partners for 8 years during which he was a

member of the Board of Directors of WireCo

Holds a Bachelor of Science degree in Management from Tulane University’s A.B.

School of Business

Forward-looking organization

Ground floor of developing culture of operational excellence

Customer centric organization

Global leadership structure with focus on accountability within the organization

Strong earnings and cash flow

Investing in a sustainable platform for growth

Operate as one global WireCo

2

7

4

1

6

5

3

7

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Section III | Industry Overview

20


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Key Industry Highlights

20

Value-Add Steel and Synthetic Rope Market

¹ Management estimate.

Large Core Addressable Market with Fragmented Competitive Landscape 1

~$4.8bn1 addressable value-add steel and synthetic rope market

Highly fragmented and localized competitive landscape

…with Favorable Supplier and Customer Dynamics 2

Proliferated supplier base and commoditized nature of inputs allow for bargaining power

Broad and diverse customer base limits concentrated exposure to any one customer or end market

…and Barriers to Entry with Limited Customer Incentives to Switch 3

Mission-critical/safety nature of products combined generate real customer stickiness

Significant advantages of scale, long sales cycle and high capital requirements

Strong brand reputation leads to significant customer loyalty and limited switching

…Serving End Markets with Long Term Growth Expectations 4

Well-positioned to capitalize on expected growth in end markets

21


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Addressable Market

Source: WireCo Management 1 WireCo company estimates for Kiswire value-add rope sales (includes Verope).

Large & Fragmented Value-Add Steel and Synthetic Rope Industry

Global Value-Add Wire Rope Market

~$4.8 billion estimated global addressable rope market

growing to $5.5 billion by 2020

Represents value-add steel and synthetic rope only (does

not include wire or Engineered Products)

~65% of the Company’s sales and 75% of gross profit are

derived from end markets where WireCo is either the

number one or two player

21

1

Select Competitors

Company

Estimated Value-Add Rope

Revenue ($ mm)

$ 475

Glo

ba

l

~450

~130

~120

~120

Lo

ca

l

Local Players / “Mom and Pops”

(100+ Companies) ~3.3bn

Highly fragmented: 100+, primarily local, players make up

global value-add rope market

Market includes global competition (~18% of market) and

local, specialized manufacturers that operate in niche

specialty markets with historically stable market shares

― Customers require proximity

― Low customer incentive to switch absent severe supply

disruption

Highly Fragmented Landscape Large Addressable Market

1,668 1,795

1,097 1,511

539

539 852

926 682

764 $ 4,838

$ 5,534

2015E 2020E

Industrial O&G Mining Maritime Fishing

1

22


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22

Commentary Key Metrics

2 Supplier / Customer Dynamics Favorable Bargaining Position with Suppliers and Customers

Supplier

Dynamics

Highly proliferated supplier base creates strong

bargaining position

― WireCo’s sophistication serves as advantage in

developing global procurement strategy to drive

cost savings

WireCo has over 10 rod and polymer

suppliers; no supplier larger than 12%

Relatively limited differentiation in suppliers with

minimal switching costs due to commodity nature

of raw material

Qualification period of only 3-6 months to

switch rod supplier

Customer

Dynamics

Highly proliferated customer base limits

concentration risk

WireCo has ~6,000 customers; no

customer larger than 3% (end user base

much larger given distribution model in

several end markets)

“Mission-critical” nature and small % cost of total

application creates limited price sensitivity

Oil & gas and mining maintained stable in

margins in 2015

Substantial daily cost of failure

23


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23

3 Barriers to Entry Several Barriers Against Competitive Entrants

Safety / mission critical applications insulated with premium value proposition

― High risk to try new competitor if product fails

Loyalty to existing brands

― End user pull-through in distribution channel

Investment in broad sales force to have presence in every market

― Ability to penetrate new end markets more rapidly and react quickly when customer needs

support

Investment in engineering team to maintain local presence in every market

― Drives engineering support in the case of application failure and creates sustainable

competitive advantage through innovation

Difficult to expand with one product line

― Customers prefer a full array of products to limit proliferation of suppliers

Cost advantages from larger scale:

― Ability to invest in Operational Excellence team

― Negotiating leverage with raw material suppliers

― Difficult to maintain cost competitiveness without global factory presence; freight costs from

Asia to Houston are $140 per ton (~10-15% of total cost structure) higher than average cost of

shipping from WireCo’s U.S. factories

Customer

Stickiness

Advantages

of Scale

24


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24

3 Barriers to Entry (Cont’d) Several Barriers from Competitive Entrants

Long lead time to establish brand awareness in new markets and entice end users to try new

product when cost of failure is substantial

― Several distributor customers who only have one product qualified

Up to 5 Year new market placement cycle:

Significant capital requirements to build new rope factory

― WireCo acquired Drumet for $105 million; cost to purchase new equipment would have been

~$250 million

Large

Capital

Requirements

Long

Adoption

Cycle Hire Sales

Force

Train /

Educate

Sales Force

Develop

Approach to

Access

Customers /

Market

Research

Educate the

Market /

Convince of

Value

Proposition

Customer

Trial

Applications

9 Months 6 Months 12 Months 18-24 Months 6-12 Months

More manageable for global player with process know-how and established global sales force

WireCo South Africa Mining Case Study

25


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End Mkt.

(% of Sales) Key Mkt. Drivers End Market Data Supports Growth

Industrial

(40%)

GDP growth

Non-residential construction

Industrial production

Oil and Gas

(22%)

US oil and gas rig count

Offshore deep water platform construction

Fishing

(13%)

Global fish production

Fish farming growth

Maritime

(7%)

Shipping activity

Global seaborne trade

Global fleet size

New vessel construction

Mining

(6%)

Global coal production

Global copper production

Global iron ore production

Source: WireCo Management

¹ GS Research. 2 Wall Street Research. 3 OECD. Million tonnes of fish. 4 Clarkson’s. Million TEU lifts. 5 Wall Street Research and Wood Mackenzie.

4 End Market Growth Summary

Glo

bal G

DP

Gro

wth

1

US

Rig

Co

un

t2

Aq

uacu

ltu

re

Pro

du

cti

on

3

Glo

bal

Sh

ipp

ing

Dem

an

d4

Co

al &

Co

pp

er5

Industry Data Supports Long Term Growth

25

1.7% 1.7%2.6%

1.8% 2.1%3.1%

Europe United States Global

2016 2017

Global CopperMine Production (Mt)

% Growth

19.519.8

20.1

1.5 % 1.5 %

2015 2016 2017

670 696

729

3.9% 4.6%

2015 2016 2017

Container Activity % Growth

75 78 80 82 84

2.7 % 4.0 % 2.6 % 2.5 % 2.4 %

2015 2016 2017 2018 2019Aquaculture Production % Growth

978

490 711

(49.9)% 45.1%

2015 2016 2017

Rig Count % Growth

768

776 780

2015 2016 2017

US Coal Production (Mt)

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Section IV | Historical Financial Summary

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A. Historical Financial Review

28


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Demonstrated track record of maintaining attractive margins across cycles through effective cost

management, highly variable cost structure, and relatively price inelastic customers

― Specialized value-add product offering and differentiated customer service drive premium pricing

which translates into higher margins

17.6% Adj. EBITDA

margin vs. median

of ~10.5% for peers1

~87% of cost base is

variable2

Strong operating performance in 2015, despite revenue decline, due to diverse end market exposure and

numerous Company-driven initiatives to mitigate impact of cyclicality in end markets

― Growth potential from rebound in markets

― 2015 revenue decline primarily driven by slump in onshore oil & gas markets which now represents

~9% of revenue

Onshore oil & gas

end market

accounts for less

than 10% of total

revenue3

Proven ability to drive high cash flow conversion

― High return on investment capital expenditures

― Focus on working capital management to achieve best-in-class metrics results in consistent cash flow

generation

~85% unlevered

free cash flow

conversion2

Financial Highlights

Source: WireCo management 1 As of 2014 FYE.

2 As of 2015 FYE. Unlevered free cash flow conversion calculated as unlevered free cash flow divided by Adj. EBITDA. 3 As of LTM Mar 2016.

Key Metrics

1

2

3

28

Management consistently achieved strong performance through initiatives, while servicing cyclical growth markets

29


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Historical Financial Review

29

$ in millions

Source: WireCo Management 1 Based on midpoint of publicly disclosed ranges of $155.5 – 157.5 million for Q2 Revenue and $26.0 – 27.0 million for Q2 Adj. EBITDA. See Appendix for EBITDA reconciliation. 2 Unlevered Free Cash Flow calculated using EBITDA less capital expenditures less change in NWC. 2 Constant currency figures reflect EUR FX rate of. 1.138.

Historical Financial Performance Historical Revenue in Constant Currency2

Historical EBITDA & Margin in Constant

Currency2

$ 122

$ 135

$ 116 $ 111

16.5 %

17.6 %17.0 % 17.0 %

2013A 2014A 2015A LTM Q1 '16

$602 $622 $607 $593

$136$145

$73 $60

$739$767

$680$652

2013A 2014A 2015A LTM Q1 '16

Other Onshore O&G

2013A 2014A 2015ALTM

Q1 2016

LTM

Q2 2016

Total Revenue (CC) $ 739 $ 767 $ 680 $ 652 N/A

% Growth 3.8 % (11.3)% - -

Adjusted EBITDA (CC) $ 122 $ 135 $ 116 $ 111 N/A

% Margin 16.5 % 17.6 % 17.0 % 17.0 % -

Total Revenue1

$ 825 $ 857 $ 684 $ 653 $ 635

% Growth 3.9 % (20.2)% - -

Gross Profit $ 235 $ 248 $ 188 $ 182

% Margin 28.5 % 28.9 % 27.4 % 27.9 %

SG&A $ 95 $ 97 $ 81 $ 79

% Revenue 11.6 % 11.3 % 11.9 % 12.2 %

Adjustments $ 0 $ 0 $ 10 $ 9

Adj. EBITDA1

$ 139 $ 151 $ 117 $ 111 $ 108

% Margin 16.9 % 17.6 % 17.1 % 17.1 % 17.0 %

Maintenance Capex N/A 19 16 14

Growth Capex N/A 8 14 12

Capital Expenditures $ 29 $ 27 $ 30 $ 26 N/A

% of Sales 3.6 % 3.2 % 4.4 % 3.9 %

∆ in NWC $ 20 $ 2 $ 24 $ 35

% of Sales 2.5 % 0.2 % 3.5 % 5.3 %

Unlevered Free Cash Flow2

$ 130 $ 125 $ 100 $ 112 N/A

% Margin 15.8 % 14.6 % 14.7 % 17.1 % -

30


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$151 $135

$117

$16

$40

$9 $2 $15

$14

2014AAdjustedEBITDA

FX 2014A CCEBITDA

O+GConsumables

Mining /OEMCrane

OtherMarkets

OperationalInitiatives

SG&A Savings 2015AAdjustedEBITDA

Commercial

2014A-2015A Adjusted EBITDA Bridge

$ in millions


FX: FX impact driven by strengthening US dollar against WireCo’s basket of currencies, primarily the Euro

Commercial: Volume decrease associated primarily with declining oil and gas markets, as well as decline in mining and OEM crane end markets

Operational Initiatives: Realization of purchasing benefits as a result of implemented procurement strategy in end of 2014

SG&A: Driven by labor and headcount reductions, HQ Relocation, negotiated 3rd party costs (audit) and disciplined expense management (i.e. T&E,

relocation/recruiting, advertising)

B

D

A

C

30

A B C D

FX and Oil & Gas responsible for $56 million of EBITDA decline; Management executed $29 million in cost

savings to offset FX / O&G impact

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B. 2016 Year-to-Date Performance Update

32


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Year-to-Date Update

$ in millions 1 Based on midpoint of publicly disclosed ranges of $155.5 – 157.5 million for Q2 Revenue and $26.0 – 27.0 million for Q2 EBITDA. See Appendix for EBITDA reconciliation.

32

Sales: Q2 started to see sequential growth over Q1 driven by pickup in macro activity and commercial initiatives

EBITDA:

— Achieved stronger than forecasted margins by 0.8%

— Driven by more favorable product mix and operational savings in procurement, plant and SG&A activities

2nd quarter was first quarterly sequential improvement in sales and EBITDA since downturn began

Sales1 Adjusted EBITDA1

Margin 17% 17% 17%

Actual¹ Actual¹

Unadjusted Adjusted

$149.0

$156.5

$305.5

Q1 Q2F YTDF

$23.5$25.7

$49.1

$2.3

$0.8

$3.2

$25.8

$26.5

$52.3

Q1 Q2F YTDF

33


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2016 Cost Initiatives

Several cost initiatives across entire cost structure planned for FY 2016 to offset lower volumes from 2015 levels

— Only includes actions executed in Q1/Q2 or already in process

Results in realized 2016 cost initiatives of $17.9 million (annualized $23.3mm) which will favorably offset margin impact from lower volume of

high margin O&G and lower NMV from less volume resulting in overall flat margin in 2016 versus 2015

$7.1mm of initiatives already executed in Q1 / Q2 (or $16.6mm annualized)

— Remaining initiatives to be achieved in Q3-Q4 already commenced

33

Cost Initiative Q1 – Q2 Q3 – Q4 Realized Initiatives

in 2016

Annualized 2016

Initiatives Commentary

Pla

nt

/ D

Cs

ROI Capex Projects - $1.4 $1.4 $2.8 High speed re-spooler in Germany /

Madavs in U.S.

Consolidation of overlapping DCs

Closure of high cost facility in the U.S.

Volume driven reductions primarily in

U.S. and Mexico

U.S. DC Closure - $0.3 $0.3 $0.5

St. Joseph Facility

Closure - $0.8 $0.8 $3.0

Other Plant Savings $0.7 $1.3 $2.0 $2.6

Total Plants $0.7 $3.8 $4.4 $8.9

Procurement $3.1 $3.4 $6.6 $6.9

Switching suppliers, leveraging volumes

Monthly negotiation process

Hired consultants to advise on utility bid

process

SG&A $3.3 $3.9 $6.9 $7.5

Headcount reductions

Lower T&E associated with reduced

headcount

Review all contracts (Software, data,

accounting, etc.)

Total Savings $7.1 $11.1 $17.9 $23.3

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Section V | Syndication Detail

35


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Summary Terms & Conditions ABL Revolver

Borrowers WireCo WorldGroup Inc. (“US Borrower”), Casar Drahtseilwerk Saar GmbH (“German Borrower”), WireCo

WorldGroup B.V. (“WireCo BV”) and certain subsidiaries of WireCo WorldGroup (Cayman), Inc. organized within

the Netherlands (collectively with WireCo BV, “Dutch Borrowers”)

Ranking Senior Secured

Security 1st priority lien on receivables, inventory, cash and certain other assets (the “ABL Collateral”)

3rd priority lien on non-ABL Collateral (the “Term Facility Priority Collateral”)

Amount $100 million

Available to the US Borrower with two $15 million subfacilities (“Subfacilities”) available to the German Borrower

and the Dutch Borrowers, respectively

Maturity 5 years

Indicative Pricing L + 175 – 225, based on excess availability

LIBOR Floor None

OID N/A

Call Protection None

Amortization None

Borrowing Base

85% of eligible trade accounts receivables, plus

85% of NOLV of eligible inventory, plus

100% of cash on deposit in account subject to the control of the Administrative Agent, less

Availability reserves

Mandatory Repayment

Must prepay loans advanced under each Subfacility when the sum of the loans, unreimbursed drawings under

Letters of Credit issued and the undrawn amount of all outstanding Letters of Credit exceeds the lesser of (i) the

commitment level for such Subfacility and (ii) the Borrowing Base then in effect for such Subfacility

Cash Dominion Event

Financial Covenants Springing fixed charge coverage ratio of 1.0x triggered when excess availability is less than the greater of (x)

10% of the line cap and (y) $8.5mm

Affirmative / Negative

Covenants Standard and customary for facilities of this type

35

36


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Summary Terms & Conditions (Cont’d) First Lien Term Loan

Borrowers WireCo WorldGroup Inc.

WireCo WorldGroup Finance LP (“Tower Borrower”)


Security 1st priority lien on Term Facility Priority Collateral

2nd priority lien on ABL Collateral

Amount $410mm

Ratings Corporate: B3 / B

Tranche: B2 / B+

Maturity 7 years

Indicative Pricing [ ]

LIBOR Floor 1.00%

OID [ ]

Call Protection 101 soft call for 6 months

Amortization 1.00% per annum

Mandatory

Repayment

Asset sales, insurance proceeds and incurrence of indebtedness

50% excess cash flow sweep subject to step downs

Financial Covenants None


Covenants Standard and customary for facilities of this type

36

37


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Summary Terms & Conditions (Cont’d) Second Lien Term Loan (Funded by Onex)

Borrowers Same as First Lien Term Loan


Security 2nd priority lien on Term Facility Priority Collateral

3rd priority lien on ABL Collateral

Amount $185mm

Ratings Tranche: Caa2 / B-

Maturity 8 years

Indicative Pricing 12.0 %

LIBOR Floor N/A

OID None

Call Protection None

Amortization None

Mandatory

Repayment

Substantially the same as the First Lien with modifications for second lien status

None required until First Lien Term Loans paid in full, except for declined mandatory prepayments

under the First Lien Term Loan

Financial Covenants None


Covenants

Substantially the same as the First Lien Term Loan with modifications for Second Lien status

Cushions on thresholds and baskets 25% greater than the First Lien Term Loan

37

38


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Indicative Transaction Timeline

Expected Date Key Events

July 13 Lender meeting

July 22 Commitments due

Aug-Oct Fund & close

U.S. Market Holiday

38

July 2016

S M T W T F S 1 2

3 4 5 6 7 8 9

10 11 12 13 14 15 16

17 18 19 20 21 22 23

24 25 26 27 28 29 30

31

Key Date

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Section VI | Appendix

40


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WireCo

WorldGroup B.V.

Pro Forma Corporate Structure

40

Public

Onex

Partners IV

WireCo WorldGroup

(Cayman), Inc.

(CAYCO)

WRCA (Luxembourg)

Holdings S.à.r.l.

(LUXCO)

WireCo WorldGroup US

Holdings Inc. (US

HOLDINGS)

WireCo

WorldGroup Inc.

(US OPCO)

~29% ~71%

Bidco Canco

(Canadian Corp.)

LP GP

Onex Corporation

Paine

Funds

Casar

Drahtseilwerk

Saar GmbH

Equity

Tower

Loan

Tower Borrower

(Delaware LP)

Co-borrower under ABL Facility

Co-borrower under First Lien Term Facility and Second Lien Term Facility

Guarantor under ABL Facility

Guarantor under First Lien Term Facility and Second Lien Term Facility

Tower LLC

(Delaware LLC)

Wholly-Owned

Foreign Restricted

Subsidiaries

Material Wholly-

owned Foreign

Restricted

Subsidiaries

Certain Operating

Subsidiaries

Organized within

Netherlands

41


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North American Oil & Gas Market

41

Note: Data ranges from 1/2/2015 – 7/8/2016

Source: Baker Hughes

The North American onshore oil and gas market is at an extreme cyclical low with rig counts at their lowest point

since 1987 in May 2016

Current U.S. Rig Count of 440 is 77% below the most recent peak of 1,919 in 2012

After consecutive weekly declines in rig count since August 2015, activity is now beginning to pick up with growth

from the low of 404 rigs at the end of May to the current amount of 440

Management believes that the expected continued recovery in rig counts provides a significant area of financial

upside as increased drilling activity is the primary driver of WireCo’s onshore oil & gas revenues

Weekly U.S Rig Count

March – July 2016

Denotes Stability / Increase in Weekly Rig Count

480

476

464

450

443

440

431

420

415

406

404

404

408

414

424

421

431

440

350

400

450

500

Mar-16 May-16 Jun-16

1,8

11

1,7

50

1,6

76

1,6

33

1,5

43

1,4

56

1,3

58

1,3

10

1,2

67

1,1

92

1,1

25

1,0

69

1,0

48

1,0

28

988

954

932

905

894

888

885

875

868

859

857

859

862

863

857

876

874

884

884

885

877

864

848

842

838

809

795

787

787

775

771

767

757

744

737

709

709

700

698

664

650

637

619

571

541

514

502

489

480

476

464

450

443

440

431

420

415

406

404

404

408

414

424

421

431

440

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16 Mar-16 May-16 Jun-16

42


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Consistent Cash Flow Generation

42

$ in millions

Source: WireCo Management 1 Unlevered Free Cash Flow calculated using EBITDA less capital expenditures less change in NWC.

Commentary

Working Capital

Capital

Expenditures

Taxes

Accounts receivable policy implemented during 2014 with organizational accountability driving performance

Consistently best in class Accounts Receivable Days relative to closest peers (~65 days vs 70 days for peers)

Tax assets also available to Company to shield earnings stream

Opportunity to improve effective tax rate with additional support from transfer pricing studies

Relatively low ongoing maintenance capex of $15 million (~2% of revenue)

Stringent ROI hurdles, reflected by $10 million of growth capital spent at <3.5x ROI in both 2015E and as planned for 2016

Unlevered

Free Cash Flow1

Accounts

Receivable

Accounts

Payable

Inventory

Phase 1: Increase large vendor terms to 60 days; ~70% complete

Phase 2: Increase terms with smaller vendors; ~50% complete

Phase 3: Include discounts in terms in purchase agreements and increase terms past 60 days

Lean manufacturing approach allowing for comprehensive inventory management program

— Reduction in inventory while increasing on-time delivery performance of >95%

– Improving from 2.8x inventory turns to best in class metric of 3.9x turns translates into ~$50 million of

annual incremental cash opportunity

— Initial plans underway to allow achievement of working capital productivity over projected period.

– Improving from current 36% to best-in-class metric of 20% results in ~$115 million incremental cash

conversion opportunity

LTM Q1 2016 Unlevered Free Cash Flow margin increased to greater than 17%

$ 130 $ 125 $ 100

$ 112

15.8 %14.6 % 14.7 %

17.1 %

2013A 2014A 2015A LTM Q1 2016

Unlevered Free Cash Flow % Margin

43


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Breadth of Opportunities to Drive Profitability


Operational Improvements | Plant Productivity & Procurement Initiatives

43

43

Approach

Action Points Top Operational Opportunities

Pro

du

cti

vit

y In

itia

tiv

es

Safety

Hired Head of HSE (June 2015)

Improve monitoring tools and systems

Develop operating procedures and training

Improve workplace conditions

Quality

Standard operating procedures for all critical operations

Operator training and process improvements

Implement supplier scorecards

Delivery

Implement planning tools (MRP, on-time measurement)

Lead time reduction (set-up times, inventory management)

Increase galvanizing capacity

Machine reliability upgrades

Cost

Establish operational excellence team

Improve machine productivity

Energy consumption reduction

Inventory

Inventory planning tools

SKU rationalization

Procurement initiatives

Established new Planning Team leader in mid-2016

Pro

cu

rem

en

t In

itia

tiv

es

Steel Rod

Strategically utilize monthly pricing adjustments to increase or decrease purchasing for incremental savings

Large base of 6 suppliers reduced to 3 primary suppliers in US plants; from 3 to 2 suppliers in Mexico

Monthly negotiations moved to quarterly

Polymers

Price negotiations with largest Nylon supplier introducing competition; retained supplier with concessions

Volume rebate with largest supplier of Polypropylene / Polyethylene

Market based price negotiation with strategic supplier of high end material HMPE

Other

Bid out multiple plastics used in steel ropes to different vendors at reduced costs

Put all fittings volume out to bid reducing volume from higher priced branded fittings providers

Reduced fragmented supplier base for wire and sourced to external supplier at cheaper price with less inventory and shorter lead times

Leveraging Global Network

— Plant consolidation and best practice

sharing

Process Improvements

— Introduce operational excellence

program to develop and manufacture

products at a faster pace with lower

cost

Inventory Reduction

— Release cash without negative impact

to customers

Lead Time Reduction

— Improve production efficiency and

customer service

1

2

3

4

$7mm of FY

‘15 savings

realized

+

$10mm

inventory

reduction

$3mm of

FY ’15

savings

from Plant

& Other

Operational

Initiatives

44


231

63

47

178

181

182

59

110

143

227

190

66

235

124

53

0

134

97

178

118

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243

227

129

Focus on investing both organically and through strategic investments in end markets that maximize ROI and cash generation

Continuously monitor and evaluate business portfolio, industry dynamics / outlook, and customer preferences to ensure investment strategy is aligned

— End market leaders identify initiatives with high degree of certainty to drive sales and capture market share

Rigorous approval mechanism to confirm ROI and promote sound capital allocation

— Investments above $250k require CEO approval to proceed

Breadth of Opportunities to Drive Profitability


Internal Investments and New Products

44

Selection Criteria

Geographic Expansion New Market Expansion Enhancements to Customer

Value Proposition

Expand from historically strong

presence in North America and Europe

The company sees opportunity in

expanding market shares in Asia,

Africa, Russia and South America

Leverage existing technology to

service new markets

— Significant opportunity exists to

leverage EP technologies to

service a variety of industries (i.e.,

railroad casings)

Planned introductions for a number of products across various end markets

Strong customer relationships and continuous company and customer interactions ensure commercially viable products are brought to

market

Ability to leverage existing customer relationships and distribution centers to quickly bring new products to market

Improvements in aftermarket services

and customer contact to improve

satisfaction and increase longevity of

relationship

Commercial Initiatives – Internal Investments

Commercial Initiatives – New Products

45


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66

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53

0

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97

178

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178

243

227

129

Approximately 60% of WireCo’s sales are direct to end market users, versus 40% through distribution partners

Distribution Model

― Used in markets and with customers that require a one-stop-shop for a number of products beyond ropes (such as western hemisphere onshore oil

and gas and mining)

― Customers in these markets generally require more technical expertise on this broader product portfolio, which distributors can provide or coordinate

Direct Model

― Used in markets where the Company has the capability to be the one-stop-shop for the customer, providing all solutions, which allows full ownership

of the customer (e.g. maritime) or where WireCo sells to an OEM (e.g. industrial crane)

― 39 strategically located company owned / leased distribution and stocking locations to support its direct sales, promoting “stickiness” with customers

45

Go-To-Market Strategy

$ in millions

Note: All sales are 2015 constant currency reflecting EUR FX rate of 1.138

1 Excludes Engineered Products and Wire / Yarns business.

Western Hemisphere Eastern Hemisphere Global

Sales Channel Sales Channel Sales Channel

Sales

Force

Distribution

Centers Distribution / Direct

Sales

Force

Distribution


Sales

Force

Distribution


Industrial 9 4 $ 55 $ 6 21 9 $ 52 $ 52 30 13 $ 107 $ 58

Fishing 1 0 1 6 12 6 61 17 13 6 62 24

Offshore

O&G 1 1 0 34 3 1 0 33 4 2 0 67

Onshore

O&G 11 3 49 8 1 0 12 4 12 3 61 12

Maritime 4 0 3 3 15 5 4 37 19 5 7 40

Mining 8 2 33 4 5 2 0 4 13 4 33 8

Total Rope1 34 10 $ 141 $ 61 57 23 $ 129 $ 148 91 33 $ 270 $ 209

Total WireCo 44 14 $ 141 $ 139 85 25 $ 132 $ 269 129 39 $ 273 $ 408

Go-to-Market Strategy (Distribution vs. Direct)

46


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129

Product Level Revenue and Gross Profit

46

$ in millions


Note: Constant currency reflects EUR FX rate of 1.138.

Constant Currency 2014 2015

LTM

Q1 2016

Revenue by Segment:

Industrial $ 176 $ 166 $ 160

Fishing 87 85 84

Offshore O+G 53 67 66

Onshore O+G 145 73 60

Maritime 45 47 46

Mining 48 41 41

Total Rope Revenue $ 553 $ 479 $ 456

Gross Profit 186 150 142

Margin (%) 34 % 31 % 31 %

Yarns $ 23 $ 20 $ 20

Wire 114 111 109

Total Yarn & Wire Revenue $ 137 $ 132 $ 129


Margin (%) 16 % 17 % 17 %

Engineered Products $ 77 $ 70 $ 67


Margin (%) 21 % 21 % 18 %

Consolidated Revenue $ 767 $ 680 $ 652


Margin (%) 29 % 27 % 27 %

47


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53

0

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97

178

118

178

243

227

129

EBITDA Adjustments

47

$ in millions


Description of Adjustments

Foreign currency exchange losses (gains), net: Combination of

cross-currency swap fair value gains, remeasurement of intercompany

loans losses and operational currency exchange gains or losses

Share-based compensation: Non-cash compensation expense

Advisory fees: Primarily shareholder management fees and expenses

Reorganization and Restructuring charges: Primarily related to US

corporate office relocation expenses, financing-related consultant

expenses and unusual severance expense

Non-cash impairment of assets: Expense related to intangible assets

of Phillystran and Lankhorst brands

Brazil Fixed Costs: Company experienced excess downtime in early

2015 at the Brazil manufacturing plant due to the resignation of certain

members of the Board of Directors at Petrobras. Company experienced

a delay in receiving the approved purchase orders resulting in the

factory sitting idle for two months

Brazil Boat Fire: Certain imported raw materials caught fire during

transportation (Company was not at fault or liable) resulting in month of

down time at the Brazil plant as no raw materials were available for

production

Aging Inventory: Initiative to correct historical operational inefficiencies

which generated the unsalable inventory and improve accounting

policies to identify, estimate and reserve for inventory losses in the

period manufactured

Portugal Offshore Factory Change-over: Costs associated with

downtime in Portugal due to changing of machinery capabilities to

accommodate specific customer order

SG&A Reductions: Pro forma savings from implemented SG&A

initiatives

Adjustment Schedule

($ in millions) 2015 LTM Q2'16

Net loss (GAAP) $ (35.5) $ (61.7)

Interest expense, net 70.6 70.1

Income tax expense (benefit) 0.1 10.2

Depreciation and amortization 44.3 43.3

Foreign currency exchange losses (gains), net 1.9 9.4

Share-based compensation 7.5 7.0

Other expense (income), net 0.8 2.5

Advisory fees 3.9 3.4

Reorganization and restructuring charges 8.7 12.9

Non-cash impairment of assets 3.2 3.2

Brazil - Fixed Costs 0.6 -

Brazil - Boat Fire 1.0 -

Pro Forma SG&A Savings 0.7 -

Pro Forma HQ Relo 0.7 -

Aging Inventory 0.5 1.0

Portugal Offshore Factory Change-over - 1.7

NA Labor Reduction 0.5 -

SG&A Reductions 5.5 3.7

Other adjustments 1.8 1.1

Adjusted EBITDA $ 116.8 $ 107.7

48


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66

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53

0

134

97

178

118

178

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227

129

Q2 2016 LTM Q2'16

($ in millions) 2013 2014 Q1 2015 Q2 2015 2015 Q1 2016 Low End of

Range High End of Range LTM Q1'16

Low End of Range

High End of Range

Net loss (GAAP) $(27.0) $(28.8) $(4.1) $(18.1) $(35.5) $(20.5) $(23.3) $(32.5) $(51.9) $(57.1) $(66.3)

Interest expense, net 80.8 78.5 19.0 16.6 70.6 19.0 15.7 16.7 70.6 69.6 70.6

Income tax expense (benefit) 10.5 (15.6) (7.6) 6.7 0.1 4.4 2.8 6.8 12.1 8.2 12.2

Depreciation and amortization 58.5 50.6 11.4 11.1 44.3 10.7 10.5 11.1 43.6 43.0 43.6

Foreign currency exchange losses (gains), net (13.6) 36.3 4.3 5.7 1.9 3.5 12.9 14.9 1.2 8.4 10.4

Share-based compensation 6.0 7.8 1.9 1.9 7.5 1.7 1.6 1.6 7.3 7.0 7.0

Other expense (income), net 0.6 (0.0) 0.3 (0.1) 0.8 (0.1) 1.6 2.2 0.5 2.2 2.8

Advisory fees 4.6 5.4 1.0 1.0 3.9 0.8 0.7 0.7 3.7 3.4 3.4

Reorganization and restructuring charges 9.5 2.2 0.8 1.5 8.7 3.8 2.2 3.2 11.7 12.4 13.4

Loss on extinguishment of debt - 0.6 - - - - - - - - -

Acquisition costs 0.4 1.5 - - - - - - - - -

Purchase accounting (inventory step-up and other) 2.2 - - - - - - - - - -

Non-cash impairment of assets - 1.1 - - 3.2 - - - 3.2 3.2 3.2

Effect of inventory optimization program 3.0 9.2 - - - - - - - - -

Brazil - Fixed Costs - - 0.5 0.1 0.6 - - - 0.1 - -

Brazil - Boat Fire - - - 1.0 1.0 - - - 1.0 - -

Pro Forma SG&A Savings - - 0.7 - 0.7 - - - - - -

Pro Forma HQ Relo - - 0.3 0.3 0.7 - - - 0.3 - -

Aging Inventory - - - - 0.5 0.3 0.2 0.2 0.8 1.0 1.0

Portugal Offshore Factory Change-over - - - - - 1.1 0.6 0.6 1.1 1.7 1.7

NA Labor Reduction - - 0.5 - 0.5 - - - - - -

SG&A Reductions - - 1.4 1.4 5.5 0.9 - - 5.0 3.7 3.7

Other adjustments 3.6 2.2 0.8 0.9 1.8 0.0 0.5 1.5 1.0 0.6 1.6

Adjusted EBITDA (Non-GAAP) $ 139.2 $ 151.0 $ 31.2 $ 30.2 $ 116.8 $ 25.8 $ 26.0 $ 27.0 $ 111.4 $ 107.2 $ 108.2

Non-GAAP Reconciliations

48

Adjusted EBITDA Reconciliation

$ in millions


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